GEN 4.1 GEN 4.1 Principles for Authorised Firms — application
GEN 4.1.1(1) The twelve Principles for
Authorised Firms, set out in GEN section 4.2, apply subject to (2) and (3) to every Authorised Firmin accordance with Rules GEN 4.1.2 and GEN 4.1.3.(2) The twelve Principles for Authorised Firms, set out in GEN section 4.2, do not apply to an Authorised Firmwhich is a Representative Office.(3) An Authorised Firmwhich is a Credit Rating Agencydoes not have to comply with the Principles set out in Rules GEN 4.2.6, GEN 4.2.7, GEN 4.2.8 and GEN 4.2.9.Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended]DFSA RM43/2007 (Made 1st June 2007). [VER14/06-07]
[Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
[Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
[Amended] DFSA RM96/2012 (Made 24th July 2012) [VER30/07-12]
GEN 4.1.2(1) For the purposes of GEN Rule 4.1.3 the term 'activities' means:(a)
Financial Servicesbusiness;(b) activities carried on in connection with a Financial Servicebusiness;(c) activities held out as being for the purpose of a Financial Servicebusiness; and(d) in relation to any particular Principle, any activity specified in (2), (3) and (4).(2) Principles 3 and 4 also apply in a Prudential Contextto an Authorised Firmwith respect to the carrying on of all its activities.(3) Principles 3 and 4 also take into account any activities of other members of the Groupof which the Authorised Firmis a member.(4) Principles 10 and 11, to the extent that it relates to disclosing to the DFSA, also applies to an Authorised Firmwith respect to the carrying on of all its activities, and takes into account any activities of other members of the Groupof which the Authorised Firmis a member.
GEN 4.1.3 GEN 4.1.3(1) The
Principlesapply to an Authorised Firmonly with respect to activities carried on from an establishment maintained by it in the DIFC, unless an extension in (2), (3), (4) or (5) applies.(2) Where another applicable Rule, which is relevant to the activity, has a wider territorial scope than that in (1), any related Principleapplies with that wider scope in relation to the activity described in the Rule.(3) Principles 1, 2 and 3 apply in a Prudential Contextto an Authorised Firmwith respect to activities wherever they are carried on.(4) Principles 4 and 11 apply to an Authorised Firmwith respect to activities wherever they are carried on.(5) Principle 5 also applies to an Authorised Firmwith respect to the activities carried on in or from any place outside the DIFCif and to the extent that the activities have, or might reasonably be regarded as likely to have, a negative effect on confidence in the financial markets operating in the DIFC.
GEN 4.1.3 Guidance1. The Principles for
Authorised Firmshave the status of Rulesand are a general statement of fundamental regulatory requirements which apply alongside the other Rulesand also in new or unforeseen situations which may not be covered elsewhere by a specific Rule. Rulesin other areas of the Rulebookbuild upon these fundamental principles. Consequently the Rulesand Guidanceelsewhere in the Rulebookshould not be seen as exhausting the implications of the Principles.2. Breaching a Principle for Authorised Firmsmakes an Authorised Firmliable to disciplinary action, and may indicate that it is no longer fit and proper to carry on a Financial Serviceor to hold a Licenceand the DFSAmay consider withdrawing authorisation or the Licenceon that basis.3. The onus will be on the DFSAto show that the Authorised Firmhas been at fault in some way, taking into account the standard of conduct required under the Principle in question.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]